Wednesday, July 19, 2017

FG releases another Paris Club refunds to states

The Federal
Government (FG) has released yet another details on State by State breakdown of
tranche of Paris Club refund of over-deductions on Paris Club, London Club
Loans and Multilateral debts on the accounts of States and Local Governments between
1995 and year 2002, reports ITRealms.

Director of
Information at the Federal Ministry of Finance, Mr. Salisu Na’Inna Dambatta
told ITRealms, Tuesday that a total of N243, 795,465,195.20 was made to the 36
States and the Federal Capital Territory upon the approval of the President on
May 4, 2017, in partial settlement of long-standing claims by State Governments
relating to over-deductions from their Federation Account Allocation Committee
(FAAC) allocation for external debt service arising between 1995 and 2002.

He also
quoted the Minister of Finance, Mrs. Kemi Adeosun in a press statement made
available to ITRealms as pointing out that these debt service deductions were
in respect of the Paris Club, London Club and Multilateral debts of the FG and
States.

“While
Nigeria reached a final agreement for debt relief with the Paris Club in
October 2005, some States had already been overcharged,” she said.

These funds,
the Minister said, were released to State Governments as part of the wider
efforts to stimulate the economy and were specifically designed to support
states in meeting salary and other obligations, thereby alleviating the
challenges faced by workers.

These
releases, she said, were conditional upon a minimum of 75 per cent being
applied to the payment of workers’ salaries and pensions for States that owe
salaries and pension.

“The Federal
Ministry of Finance is reviewing the impact of these releases on the level of
arrears owed by State Governments,” she said.

Adeosun
further said, a detailed report is being compiled for presentation to the
Acting President, Professor Yemi Osinbajo, as part of the process for approval
for the release of any subsequent tranches.